RSKD); The deadline for the lead applicant is July 1, 2022
PHILADELPHIA CREAM, May 20, 2022 /PRNewswire/ — Shepherd Montague is investigating allegations of securities fraud on behalf of investors who purchased the securities of Riskified Ltd. (“Riskified” or the “Company”) (NYSE: RSKD) at July 2021 initial public offering (“IPO”) (the “Class Period”).
If you purchased Risky Securities during the Class Period, want to discuss At Berger Montague investigation, or if you have any questions regarding your rights or interests, please contact the lawyers Andre Abramowitz at [email protected] or (215) 875-3015, or Michael Dell‘Angelo to [email protected] or (215) 875-3080. You can also visit: https://investigations.bergermontague.com/riskified-ltd/
Whistleblowers: Anyone with non-public information about Riskified is encouraged to help confidentially. At Berger Montague survey or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
On July 28, 2021Riskified’s registration statement for an IPO was declared effective and was used to sell 20 million shares of Class A common stock to $21 per share, generating more than $422 million in product.
According to the complaint, the September 9, 2021on a conference call to discuss the Q2 2021 financial results of Riskified, CFO Aglika Docheva revealed that Riskified tends “to experience higher chargebacks when we enter a new industry.”
On November 16, 2021, as part of the company’s third quarter 2021 financial statements, defendants disclosed that, among other negative developments, Riskified’s revenue growth declined to 26% year-over-year, its growth Gross Merchandise Value (“GMV”) had declined 28% year-over-year and gross profits had only increased 10% year-over-year. Defendants also disclosed that Riskified’s cost of revenue soared to $28.3 million during the third quarter, mainly due to a sharp increase in chargeback expenses. CFO Dotcheva blamed Riskified’s growing merchant base as the main cause of the increase in chargebacks.
Finally, on February 23, 2022, in announcing fourth quarter and full year 2021 results, defendants disclosed that Riskified’s revenue growth and GMV growth continued to slow, and Riskified’s cost of revenue continued to increase. Chief Financial Officer Dotcheva said the year-over-year decline in gross profit margin “was primarily due to [Riskified’s] expansion into new industries and regions, growth in travel industry tickets as a percentage of total billings, and new merchant onboarding. »
At the time of the complaint, the risky Class A shares were trading below $6 per share – over 70% below the IPO price.
Shepherd Montaguewith offices at philadelphia cream, Minneapolis, washington d.c.and San Diegohas been a pioneer in securities class actions since its founding in 1970. Shepherd Montague has represented individual and institutional investors for over five decades and acts as lead counsel before courts across United States.
Andre Abramowitzsenior counsel
Michael Dell‘Angelo, executive shareholder
THE SOURCE Shepherd Montague